A new era for regional maritime trade as AGL takes over Isles Malindi port

In a significant development for the regional maritime trade, a French logistics firm, Africa Global Logistics (AGL) last week took over the management and operation of the Zanzibar Malindi Port.

This pivotal transition stems from a five-year agreement inked last May between the Zanzibar government and AGL with the primary objective to enhance the port’s efficiency, services, and revenue collection in which AGL will shoulder all operational costs, with the revenue being divided in a 70:30 ratio in favour of  AGL

Currently, the Malindi Port generates around Sh4.0 to Sh4.6billion per month, with a handling capacity of roughly 80,000 tonnes of twenty-foot equivalent units (TEUs) annually.

However, under AGL’s stewardship, these numbers are projected to witness a substantial surge.

AGL’s mandate extends beyond managing the existing operations of the port in which the company has committed to launch a modernization and development programme that includes the construction of a depot zone to alleviate congestion.

The AGL’s plan also encompasses attracting a broader assortment of maritime lines and stimulating trade volumes.

The terms of the agreement stipulate that existing employees will retain their job positions with the expectation of adapting a new work culture and standards.

The company also anticipates creating hundreds of indirect employment opportunities and fostering the training and skill development of local talent.

However, AGL’s management will be confined to the Malindi seaport, with the Zanzibar Ports Corporation (ZPC) continuing to oversee all other smaller ports.

The agreement is expected to catalyze the modernization of Zanzibar’s infrastructure, ensuring compliance with international standards of quality, security, and safety in its import and export conditions, courtesy of AGL’s expertise in port terminal management.

Africa Global Logistics is a leading multimodal logistics operator in Africa and a part of the MSC Group.

This prominent shipping and logistics group boasts a workforce exceeding 21,000 across 49 countries.

AGL’s acquisition of the management of Malindi Port underscores the company’s growing influence in the global logistics sector and its commitment to fostering the regional economic growth.

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